Wednesday, August 19, 2020

Chinese may soon yamseng without Aussie wine

Guardian (Aus Ed):

China opens door to tariffs on Australian wine imports as trade tensions spiral

Share prices tumble after Beijing launches ‘anti-dumping’ investigation amid growing diplomatic unease

Mainland China is responsible for 39% of the total export value of Australian wine. Beijing’s decision to start an ‘anti-dumping’ investigation into imported wines originating in Australia has unsettled businesses

Photograph: Bloomberg/Getty Images

China has opened the door to imposing tariffs on Australian wine imports by launching the same kind of trade investigation that triggered steep imposts on barley, sparking sharp falls among affected businesses on the Australian share market.

Amid ongoing diplomatic and trade tensions between the two countries, China’s commerce ministry announced on Tuesday that it was starting an “anti-dumping” investigation into imported wines originating in Australia.

The brief statement did not provide any details about the alleged trade distortions that had triggered the investigation, but said the review was due to be completed within a year – with the possibility of a further six-month extension.

Beijing’s decision to introduce tariffs of about 80% on Australian barley imports in May this year followed a 18-month-long investigation by China’s commerce ministry into “dumping” – when a product is sold at a lower price overseas than it is in the country where it is produced – and the effect of government subsidies.

China is the leading export market for Australian wine, but China also produces wine domestically. The commerce ministry investigation is understood to have been triggered after China’s wine industry association complained about the impact of alleged dumping by Australian competitors.

Australia’s agriculture minister, David Littleproud, said the government rejected the wine “dumping” allegations and vowed to “work closely with industry to fight these claims”.

He said Australia’s reputation as a quality wine producer was “recognised by Chinese consumers who have helped make China our largest export market with $1.1bn exported in 2019/20”.

“I note that this anti-dumping investigation will run for up to 12 months, and I am committed to working with the Australian wine industry to ensure that all necessary information is provided to refute any claim that Australian wine is being dumped,” Littleproud said in a statement.

The move has unsettled the sector, given that China is the top export market for Australian wine. Mainland China was responsible for 39% of the total export value of Australian wine in the year ending June 2020, followed by the United States (15%) and United Kingdom (13%), according to Wine Australia.

Treasury Wine Estates Limited – whose share price fell by nearly 20% before regaining slightly – told the Australian stock market it would cooperate with any requests for information from Chinese or Australian authorities.

It emphasised that Treasury Wine Estates – which has headquarters in Melbourne and is responsible for importing brands such as Penfolds – had “had a long and respectful relationship with China over many years” and remained committed to China as a priority market.

The share price of Australian Vintage Limited – whose brands include McGuigan Wines, Tempus Two and Nepenthe – also fell by about 8% in trading on Tuesday.

Wine was one of the goods cited by China’s ambassador to Australia, Cheng Jingye, in a controversial interview in which he warned that Australia’s forthright push for an international investigation into the origins and early handling of Covid-19 could sour bilateral ties and affect consumer sentiment.

Cheng told the Australian Financial Review in April that “if the mood is going from bad to worse”, Chinese consumers might ask: “Why should we drink Australian wine? Eat Australian beef?”

The Australian government condemned those remarks at the time, branding them as a form of economic coercion, but there have been fears about broader trade impacts. Earlier this year, China also barred red-meat imports from four Australian abattoirs on technical regulatory grounds.

Chinese state media have run numerous articles in recent months warning that trade ties could further spiral if the diplomatic dispute worsened.

In May the Global Times said that Australia would be “delusional to think that economic and trade cooperation between the two countries would not suffer from a deteriorating bilateral relationship”.

The same article claimed numerous Australian exports – including wine and iron ore – along with tourism and international education “could be at risk if Canberra continues to exacerbate bilateral relations”.

Comment on the wine investigation has been sought from the Chinese embassy in Australia.

Australia’s trade minister, Simon Birmingham, revealed that Chinese officials had advised Australia they were also considering a request to launch a countervailing duties investigation into Australian wine. That would focus on the alleged impact of government subsidies.

“This is a very disappointing and perplexing development,” Birmingham said.

“Australian wine is highly sought after in China because of its quality. Australian wine is not sold at below market prices and exports are not subsidised.”

Labor’s trade spokesperson, Madeleine King, said the opposition was “deeply concerned” by the development and called on the government “to use all appropriate diplomatic channels to address these allegations” in order to prevent tariffs from being imposed.

As the Guardian has previously reported, the Australian government has been receiving advice to be patient and hold the line amid the turbulence in its relationship with China, even as trade is increasingly emerging as a pressure point.

Insiders point out that Chinese officials have long had objections to Australia’s anti-dumping system and how it has affected Chinese products such as steel. They say both countries will ultimately have to find a new settling point in the relationship.

The latest move comes amid rising diplomatic tensions between China and Australia, driven by a range of issues including the dispute over Canberra’s call for a Covid-19 inquiry, along with Beijing’s imposition of tariffs on Australian barley and the disagreement over the new national security law in Hong Hong.

Some Australian business leaders have lamented how trade has been used as a “weapon for foreign affairs”. But the former prime minister Malcolm Turnbull has warned business against reacting to Beijing’s actions in a way that would only “encourage more bullying from China”.


  1. ccp lover love australia wine, australia beef, australia university, some even move there because of australia democracy, n some work there for the australia dollar, n at the same time keep telling people how bad is australia n how great is ccp china, but refuse to move back to his motherland, odd.

    1. 犬养mfer, what's yr for the intended move to Oz?

      DemoNcratized kangaroo court!

  2. Wakakakakaka…

    "encourage more bullying from China” - Malcolm Turnbull

    This oz dingo certainly knows how bullying works!

    Bcoz he has had a big hand in formulating those illegal immigrants detention camps located at those vessel island states surrounding oz!

    If those island states refuse to that illogical oz 'request' then all oz economic aids WOULD be terminated w/o further consideration!

    BTW, anyone can do a web search on the internet trading platforms, 淘宝, 天猫, 京东, 孙宁 etc to do prices comparison on any items.

    Most of the Oz wines in these sites r selling below prices at Oz!

    Ain't that exactly what “dumping” – when a product is sold at a lower price overseas than it is in the country where it is produced – and the effect of government subsidies?

    In the past the Chinese authority just close an eye as cheaper oz wines benefit Chinese wine drinkers.

    But if the oz dingos politicians want to play 'tough' by howling its uncle's political one-upmanship then there r many alleged trade distortions that China could had used to trigger the investigation.

    Bearing in mind that many other foreign importers r doing the similar dumping & cross govt subsidies to gain China consumer market share!


    Who's bullying who?

  3. The Great CCP Tempurung indeed.
    It took just about 30 years of economic growth to turn CCP into a raginf bully.

    1. What an one trick pony show coming out from a old moneyed mfer, bending to rain fire & hailstones on China!

      Do u actually know a raging bull?


  4. The Global Times said that Australia would be “delusional to think that economic and trade cooperation between the two countries would not suffer from a deteriorating bilateral relationship”.  

    Damn right ! But in spite of the warning, the Chinese knows full well who they are dealing with. Being racist and xenophobic is endemic in the Anglo Aussie psyche. The "yellow peril" is still very real and vivid in the average Australian’s mind. Remember the "White Australian Policy" was only dismantled 'officially' in 1973.

    It does not matter how big a trading partner China is. It does not matter if the Oz's very economic survival depends on China. It does not matter that the POTUS is mentally challenged and devoid of all humanity. When push comes to shove both the government (regardless of party) and the general public will ALWAYS side with the yanks.

    These Anglo Aussie have it in their bones that they have the god-given right to spit on these heathen yellow race ( and other non white races too ). Why, these chinks should get down on their knees with deep gratitude that the superior white race even deign to allow China to buy their superior products. Damn chinks getting too big for their britches daring to impose tariffs. Sheesh !

    1. global times is ccp utusan, diff is in msia, only zombie read utusan, while in china, both local n foreign zombie read ccp utusan.

    2. Global Times = CCP Toilet paper

    3. What about those well defined zombies of demoNcracy & Abrahamism of all those outside China?

      They DON'T read anything!

      Just follow that meme-ed involuntary urge of anything CCP China is bad news to them!

  5. During the 22 years that Mamak was Malaysia PM, he ran a contentious and unfriendly relationship with the US, frequently openly criticizing American actions and policies.

    Yet the economic and trade cooperation between the two countries did not suffer from the deteriorating bilateral relationship.
    American companies continuously, year after year, invested in Malaysia.

    THAT is an example of a mature Non-Bullying superpower.

    With the CCP, they are using all kinds of levers over what should be commercial decisions by Private Companies to Bully countries that have differences with them over policy.

    CCP very Immature Bully.

    1. Did you mix up the US with UK?

      During Mamak's reign the US had been busy developing their next generation war tools and building up their inventory of weapons.

      Busy with curbing the communist which they succeeded with the breaking up of the Soviet Union, playing a leading role in the re-unification of Germany and ending the cold war.

      They had also been busy waging wars in the Middle East, raining artilleries in Iraq and Afghanistan etc.

      They would curbed the growth of the Japanese because Japan was fast becoming the 2nd largest economy of the world and threatened to overtake the US. Japan were more advance than the US in many areas, electronics, car industry and especially in semi-conductor. Japanese businesses were growing so fast that many Japanese corporations had bought up assets in the US. Unfortunately the US saw it coming and fixed up the Japanese and the rest, they said is history.

      China in that era was the most fortunate. They were so backward that even Malaysia was far ahead of them and as a result they were left alone undisturbed by the US who has never imagined the "sick dragon" has so quickly re-invigorated themselves from the last 2 hundred years of decadence.

      So what was Malaysia to US during this period of time? An unimportant small fry not worth any attention. Therefore a mature superpower is definitely an overstatement! Wakakaka ........

    2. So simple meh, Old moneyed mfer!

      U obviously know fart about The Thucydides Trap!

      Who/what is bolihland to the USofA?

      A controllable minion of the lowest order that CAN NEVER threaten a tiny hair of US!

      China cultivates no such minions!

      Yet if u look at all the dirty/underhanded/kitchen sink tactic been used by yr uncle Sam AGAINST a secondary & upcoming power, like China, then & only then u know what's a very immature bully!

    3. TrumpAss Kisser is so completely out of his depth, ditto his blind mice ally THAT 'bully bully bully TS', infamous for his extreme poor choice of C&P quotes and articles that just simply couldn't cut it, hehe. Batty of course is just hanging on by mere thread, making batshit noises, badgering endlessly with senseless, silly and oft times annoying irrelevancies. OK, I admit to taunting him occasionally, HA HA, but then he is just asking for it la, hehe

      Podah gang of blind mice afflicted with banana complex.

    4. i dun know what usa hv done to japs, all i know is usa is japs best friend, japs even want to become the sixth eyes.

    5. All u know is just fart floating within yr well dwelling!

      Many Jap r meme-ed to think of themselves like honorary white box of the WWII legacy.

      Liken to yr involuntary diarrhea every time CCP China is been mentioned!

  6. @ CK.....TrumpAss Kisser only knows about Money Trap, hehe

    He dug his own grave trying to use the railing of Mahathir as an example to show 'the maturity of a NON-Bullying superpower' ! OMG....the US of A is a MATURED non-bullying superpower ??? LOLOLOLOL

    @ on !